Why is my homeowners insurance more expensive than my neighbors?
It’s a great question and it’s not uncommon to find a similar looking house that cost less to insure. We work to educate all our clients about the variables that affect the cost of their homeowners insurance. We also work to inform our clients about the simple decisions they can make that can help lower the cost of their insurance.
The most important thing to remember, however, is to make sure that you purchase enough insurance to realistically cover your home and all your assets, rather than purchasing the cheapest policy available. This is important because if you purchase insurance coverage that doesn’t completely cover your home, you may end up paying for repairs and replacements out of your pocket in the event of an accident.
Here are 7 things that can affect the cost of your home insurance:
1. Age of home
The age of your home can affect the cost of your home insurance because a new home is more likely to be in better shape than an older home. One thing you can do as a homeowner is keep your home, new or old, up to date with current electrical, plumbing and HVAC systems. Also, homes that are constructed with fire-resistant materials like brick and stone are cheaper to insure than homes made out of flammable material like wood.
2. Size
Usually, the bigger your home, the more expensive it will be to insure. The types of materials you use to build your home will determine the cost of insurance as well. The more expensive materials you use, the most costly your insurance.
3. Discounts for updates
Updating your home can either do one of two things–boost the value of your home and leave you with insufficient coverage or trigger lower premiums as a reward for reducing risk in your home. For example, a new roof can cut your premiums by 10 to 20 percent.
4. Claim history
Homeowners who file frequent claims pay higher rates for homeowners insurance.
5. Multi-policy discount
Bundle your policies to save up to 25% on your homeowners insurance premium. Bundling means working with one insurance provider on all your insurance needs for your home, car and life insurance.
6. Marital status
If your marital status changes, it’s important to tell your insurance advisor immediately. Your agent will review your policy with this new information to make sure your policy information and coverage are up to date. You may need less coverage if divorced, or more coverage if recently married.
7. Credit score
The higher a homeowner’s credit score, the lower their risk level and the less likely they are to file an insurance claim. Because of this, homeowners with good credit have cheaper insurance rates.
It never hurts to ask about your homeowners insurance cost
The 7 factors listed above are just a few of many things that play a part in the cost of your insurance. Talk to your insurance agent (844-272-3420) to be sure that you are getting the best deal and the best coverage for your unique needs. After all, it never hurts to ask about saving money!
